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July 30, 2019

Just Eat merger with Takeaway.com: What it means for the food delivery market

Comment from GlobalData on what the Just Eat and Takeaway.com merger means for the food delivery market.

Just Eat has successfully agreed to merge with Dutch rival Takeaway.com, creating arguably the world’s largest food order & delivery firm.

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Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
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The deal will see Takeaway.com acquire Just Eat for a share price of 731p, representing a premium of 15% on Just Eats closing price on July 26th, valuing the British delivery service at £5bn.

As per the deal, Just Eat shareholders will receive a share ratio of 0.09744 Takeaway.com for each Just Eat share, owning 52.2% of the combined group.

It will be headquartered in Amsterdam and listed on the London Stock Exchange, with a “significant part of its operations” in the UK.

A surge in share price suggests investors are positive about the move, after the recent poor performance of Just Eat .

In the last 12 months, Just Eat has been struggling on the stock market, with a drop of 25% in share price after a number of failed investments stagnated growth.

However, the announcement has propelled the delivery giants share price up by 23.7%, with a number of key stakeholders such as Cat Rock pushing for the merger.

A number of investors have noted the benefits of being able to access leading positions in some of the largest markets, particularly Germany, Canada, the Netherland and the United Kingdom.

The food delivery market has been a battleground for a number of years, as rivals attempt to dominate in a market that is soon expected to value upwards of €100bn.

Uber Eats and Deliveroo have both been aggressively looking to gain market share over Just Eat , with rumours of a merger between the two circulating for some time.

A merger between Takeaway.com and Just Eat will help to relieve pressure on both firms, combining to create the biggest online food delivery service in the world with an impressive 360 million orders in 2018 alone.

Questions have been raised over the lack of geographical overlap, which will limit the ability to consolidate their respective market shares and subsequently create a monopoly.

Just Eat has expanded in Canada and Latin America, while Takeaway.com has recently moved into south-eastern Europe and Israel.

Nevertheless, the joint company will gain over 40 years’ experience in the sector as both founders still remain. Additionally, it will be able to deploy larger capital to strengthen its position, alongside leveraging on future investments.

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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